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Yea - when looking at the folder of the SD card there's no apps on it.. I guess it saves to the internal memory, but I don't really understand why. Isn't that pretty limiting?
On stock Android software all applications are installed to the 256MB of internal memory. If (and when) the Droid is rooted you will be able to install applications to your SD card so you can have MANY MANY more applications.
The SD card on stock firmware is used for some caches and for media.